Property tax reduction of 0.91% recommended
Following the 2018-2019 Provincial Budget reinstatement of the SaskEnergy Grant-in-Lieu of taxes (GIL), City Council is in the position to reduce residential property taxes by nearly a single percentage.
“This is most definitely a positive development,” says Kerry Tarasoff, Chief Financial Officer. “Anytime we can ease the load on the property tax is most welcome.”
Instead of traditional property taxes, the provincial government has paid the City GIL for property and rights-of-way on which SaskPower, SaskEnergy, and TransGas operate within Saskatoon.
Last spring, the 2017-2018 Provincial Budget eliminated the provincial utility GIL to municipalities. This left the City with a $11.4 million shortfall.
The combined negative impact to the City’s 2017 and 2018 budgets due to the loss of the SaskEnergy GIL was $5.72 million.
Through careful planning, spending and cost reductions, just $2.66 million of that was passed onto taxpayers.
“With the Province re-establishing the GIL for SaskEnergy, we’re able to replace three-quarters of that amount this year and apply the rest for next year’s budget,” Tarasoff says.
Tarasoff says that translates to a 0.91% property tax reduction, bringing the 2018 rate to 3.79%.
The 3.79% increase means a typical single-family home with an assessed value of $371,000 will pay an additional $5.50 per month or $66 for the year.